Uncovering Heterogeneity in the Relationship between Competition, Corporate Governance and Firm Performance using Quantile Regression on Indian Data

This paper investigates the relation between product market competition, corporate governance and firm performance in Indian manufacturing industries covering the period 2005-2015. Evidence suggests that firm performance improves as competition increases. Besides, the enactment of Clause 49 in December 2005, which aimed at improving corporate governance in India, improved firm performance in less competitive industries. The findings therefore imply that competition acts as an external mechanism to discipline management and increases firm performance as a consequence.